Weekly Crypto Analysis February 18-24, 2019

Weekly Crypto Analysis February 18-24, 2019

BTCUSD Bitstamp

Source: tradingview.com

Bitcoin volatility shrank for the past week, which is a good thing for bulls, considering that the consolidation took place after a breakout above the 4h chart 200 moving average. We suspect the area above and around the MA will act as significant support, raising the odds of a $3,706-resistance retest.

We suspect the price still has the potential to reach the upper line of the formation we’ve talked about in our last weekly crypto analysis. A breakout and continuation higher might be stopped by sellers there, but the outcome for next week is slightly positive.

On the other hand, we will need to see a breakout below the 4h chart 200 moving average, in order to have a confirmation that sellers had resumed impulsively and the lower line of the structure will be retested again. We think that’s the less likely scenario at this point.

ETHUSD Kraken

Source: tradingview.com

In line with the Bitcoin performance, Ether consolidated in a triangle-type formation for the past week. At the time of writing, the price action is heading towards the upper line of the triangle, which we believe has a greater chance of breaking breached.

Overall, the price action structure suggests the bulls are in still in control, which means a continuation towards the 131 resistance, or even higher, towards 150 area, might be seen in the next few days.

If selling resumes and the triangle will fail on the downside, the 4h chart 200 moving average will be a great challenge for sellers. Both the triangle and the MA will need to be overcome so the sellers will be fully in control again. Anything could happen until the triangle break will take place, but judging by the current conditions, the upside is clearly favored.

STRUSDT Poloniex

Source: tradingview.com

Although widely-considered a cryptocurrency with high potential, Stellar gradually disappeared from the spotlight, as its price continued to fall until February 6th, 2019. An interesting level that needs to be mentioned is 8.2 cents, which is where the May 2017 high is located.

Even though the sellers managed to break below it, we do not see follow through after the break, but an accumulation of buyers. Sellers are being squeezed right now, with buyers stepping in at higher levels, which makes us believe that a re-break above the 8.2 cents key area is very likely to happen soon.

Above it, the next hurdle is located around 8.8 cents, an area where the 4h chart 200 MA is located. Only a break below the short-term ascending trend line will confirm that sellers had resumed and the 2019 low, located around 7.24 cents, might be revisited again.

Briefings about ICOs

An interesting project that recently started its ICO is Poseidon, an ambitious team which aims to build climate change solutions with immediate impact. Poseidon’s platform uses the blockchain technology to let anyone rebalance the climate impact of any product or service in real time at the checkout.

In terms of upcoming ICOs, Pledgecamp will start raising funds on February 18th. It is a project that aims to disrupt the crowdfunding industry, competing with popular platforms like Kickstarted or Indiegogo. The ICO will run until March 19th.